Your queries: Above 50 and want a home loan? Get a young co-applicant

You can avail a joint home loan with a younger family member that will help increase eligibility, tenure, tax benefits and lower the Equated Monthly Instalments.

Above 50 and want a home loan? Get a young co-applicant

Above 50 and want a home loan? Get a young co-applicant

* I am 52 years old and want to take a housing loan. Will the bank give me a 20-year loan as I will retire from work at 60 years?—A K Goel

Lenders usually check the age of the borrower to assess the active working years and ability to repay. A few lenders do not sanction loans to single applicants aged 50-plus. You can avail a joint home loan with a younger family member that will help increase eligibility, tenure, tax benefits and lower the Equated Monthly Instalments. It is advisable to close existing loans and credit balances before you opt for a housing loan.

* I got a loan sanction letter of Rs 30 lakh after paying the processing fees. But after two months, the bank is rejecting the loan on inconsistency in income. What should I do as I have already paid some money to the seller?—Rajkiuran G

A financial institution sanctions a home loan after considering various factors like credit history, occupation, age, income, work experience, repayment period, etc. A pre-approved home loan is an in-principle approval for a loan given on the basis of the borrower’s income, creditworthiness and financial position. In a pre-approved home loan, banks provide a loan sanction letter stating that the borrower will be able to avail the home loan up to a certain amount subject to meeting all requirements and in keeping with terms and conditions.

Your income fluctuation may have resulted in the rejection of the home loan as income is directly proportionate to your repayment capabilities. You can consult the financial institution and inform them of the reasons with proof for this fluctuation. If the financial institution agrees, it may consider approving the home loan. For refund of your processing fees, you may want to check the terms and conditions which may be available on the sanction letter.

* I stay in a house which is in my late father’s name. Can I get loan against this property?—Rohit Padhi

You can avail a loan against property (LAP) on the house if the property is in your name. If the property hasn’t been transferred to your name, you could seek legal advice for the transfer as it is an important deciding factor while approving your home loan. LAP can be obtained from any financial institution if you fulfil the eligibility criteria. The amount received as LAP can be utilised either for acquiring a new property or repaying your existing loan. The repayment process for LAP is almost the same as a home loan repayment procedure.

The writer is JMD and CEO, DHFL. Send your queries to fepersonalfinance@expressindia.com